Yahoo Announces a $50 Million Compensation for Users Following Security Breach

Yahoo has agreed to compensate the victims of a security hack with $50 million due to which about 200 million U.S consumers were affected while three billion email accounts were affected worldwide.

Verizon's Oath business has said in a proposal that they are going to pay $50 million to about 200 million users in the US and Israel.

Along with this amount, the company is bound to pay $35 million to the lawyers as well as the affected users will be provided around $350 each for a two-year credit monitoring service via AllClear. Small businesses may also be compensated with costs to cover losses related to the hacks. This includes delayed tax refunds, identity theft, and any other data loss issues because of this security breach. Premium Yahoo email services users will be eligible for a 25 percent refund of the amount they have paid.

This deal is waiting for the approval from Luch Koh, the U.S. District Judge of the Northern District of California. The hearing will be conducted on November 29.

Oath, the company that acquired Yahoo, and Altaba Inc. the owner of remaining Yahoo's assets, will pay the 50-50 of the total compensation amount.

According to Yahoo, this hack attempt that was made by Russia starting in 2013, impacted about three billion accounts directly, but they haven't provided any evidence.

This incident was later reported in 2016 after Verizon made a deal to acquire Yahoo in $4.8 billion

Although first Yahoo estimated that at least 500 million users are affected by this incident, later it revealed that all of the Yahoo's users had been affected and their data has been swiped.